February options expiration: Short put options on SO, ABT, SFL & more!
This was February options expiration and yet another “payday” of income generated from selling naked put options. As usual, I had a number of short put options expiring, all of which were comfortably out of the money going into expiration.
Here are the results:
- Abbott Laboratories [[ABT]] – Some February 39-strike put options I sold against ABT on 8/28/09 in my IRA expired out-of-the-money (OTM) for a 6-month net return of about 2.7%.*
- Pepco Holdings [[POM]] – The February 12.5-strike put options I sold against POM on 8/7/09 expired OTM for a 6-month net return of over 6%.*
- Ship Finance International [[SFL]] – The February 10-strike put options I sold against SFL on 9/21/09 expired OTM for a 5-month net return of about 6.5%.*
- Southern Co. [[SO]] – The February 30-strike put options I sold against SO on 9/17/09 expired OTM for a 5-month net return of about 3.8%.*
- Trustmark Corp. [[TRMK]] – The February 15-strike put options I sold against TRMK on 10/21/09 expired OTM for a 4-month net return of over 4%.*
* The return on cash-secured put option sales was based on the premium received from the sale of the options (minus commissions) against the unmargined capital set aside to pay for their possible assignment (i.e., my being put the shares of the stock).
